Syngenta Reports Q2 Earnings Rise As Potential IPO Looms
2022.08.30 12:42
By Scott Kanowsky
Investing.com — Syngenta has reported a 39% increase in second-quarter core earnings, as the Switzerland-based agriculture chemicals maker was boosted by strong performance throughout the business ahead of a planned initial public offering later this year.
Earnings before interest, taxation, debt and amortization rose to $1.7B during the three-month period, with all of Syngenta’s divisions posting double-digit sales growth. Total group sales jumped by 24% to $9.2B.
The company said these upticks helped offset “logistics challenges” stemming from supply chain constraints and surging energy costs.
Syngenta’s EBITDA margin came in at 19.5% over the first six months of 2022, an improvement of 1.1 percentage points compared to the same period in the prior year.
The results come as Syngenta is reportedly mulling a potential IPO in Shanghai before the end of the year that would see the company valued at roughly $50B. The seed and fertilizer producer, which is owned by state-backed China National Chemical Corp., may look to raise around $10B in what would be one of the largest flotations this year.
ChemChina – now part of a chemicals titan worth $152B in sales following a recent merger with domestic rival Sinochem Holdings Corp – is planning to maintain a majority stake in Syngenta, according to Reuters.
